Atal Pension Yojana
Business India

Investing In Atal Pension Scheme (APY)? Here’s How Much Contribution You Need To Make

Atal Pension Yojana (APY) is a pension scheme focused on the unorganised sector. The pension scheme – Atal Pension Yojana – allows persons between 18 and 40 years of age to invest for up to 20 years to earn a fixed monthly pension of Rs 1,000-Rs 5,000 after attaining retirement – at age 60 years, according to regulator Pension Fund Regulatory and Development Authority (PFRDA)’s website – pfrda.org.in. Subscribing to the Atal pension scheme at an early age minimises the contribution required to reach the desired monthly pension, maximising the pension benefit, say wealth planners. (Also read: How to invest in Atal Pension Yojana)

A comparison of indicative contribution levels required by the investor to earn a fixed monthly pension of Rs 1,000-Rs 5,000 under Atal Pension Yojana:

Here are details of the investment required in Atal Pension Yojana (APY) to reach a goal of Rs 1,000 per month after attaining retirement, according to the National Securities Depository (NSDL)’s website – nsdl.co.in:

Fixed monthly pension of Rs 1,000 vs contribution period under Atal Pension Yojana

AGE OF JOINING YEARS OF CONTRIBUTION INDICATIVE MONTHLY CONTRIBUTION (IN RUPEES) MONTHLY PENSION TO SUBSCRIBER AND SPOUSE (IN RUPEES) INDICATIVE RETURN OF CORPUS TO SUBSCRIBER’S NOMINEE (IN RUPEES)
18
42
42
1,000
1.7 Lakh
20
40
50
1,000
1.7 Lakh
25
35
76
1,000
1.7 Lakh
30
30
116
1,000
1.7 Lakh
35
25
181
1,000
1.7 Lakh
40
20
291
1,000
1.7 Lakh
(Source: npscra.nsdl.co.in)

Here are details of the investment required in Atal Pension Yojana (APY) to reach a goal of Rs 2,000 per month after attaining retirement, according to the NSDL website:

AGE OF JOINING YEARS OF CONTRIBUTION INDICATIVE MONTHLY CONTRIBUTION (IN RUPEES) MONTHLY PENSION TO SUBSCRIBER AND SPOUSE (IN RUPEES) INDICATIVE RETURN OF CORPUS TO SUBSCRIBER’S NOMINEE (IN RUPEES)
18
42
84
2,000
3.4 lakh
20
40
100
2,000
3.4 lakh
25
35
151
2,000
3.4 lakh
30
30
231
2,000
3.4 lakh
35
25
362
2,000
3.4 lakh
40
20
582
2,000
3.4 lakh
(Source: npscra.nsdl.co.in)

Here are details of the investment required in Atal Pension Yojana (APY) to reach a goal of Rs 3,000 per month after attaining retirement, according to the NSDL website:

Fixed monthly pension of Rs 3,000 vs contribution period under Atal Pension Yojana

AGE OF JOINING YEARS OF CONTRIBUTION INDICATIVE MONTHLY CONTRIBUTION (IN RUPEES) MONTHLY PENSION TO SUBSCRIBER AND SPOUSE (IN RUPEES) INDICATIVE RETURN OF CORPUS TO SUBSCRIBER’S NOMINEE (IN RUPEES)
18
42
126
3,000
5.1 Lakh
20
40
150
3,000
5.1 Lakh
25
35
226
3,000
5.1 Lakh
30
30
347
3,000
5.1 Lakh
35
25
543
3,000
5.1 Lakh
40
20
873
3,000
5.1 Lakh
(Source: npscra.nsdl.co.in)

Here are details of the investment required in Atal Pension Yojana (APY) to reach a goal of Rs 4,000 per month after attaining retirement, according to the NSDL website:

Fixed monthly pension of Rs 4,000 vs contribution period under Atal Pension Yojana

AGE OF JOINING YEARS OF CONTRIBUTION INDICATIVE MONTHLY CONTRIBUTION (IN RUPEES) MONTHLY PENSION TO SUBSCRIBER AND SPOUSE (IN RUPEES) INDICATIVE RETURN OF CORPUS TO SUBSCRIBER’S NOMINEE (IN RUPEES)
18
42
168
4,000
6.8 Lakh
20
40
198
4,000
6.8 Lakh
25
35
301
4,000
6.8 Lakh
30
30
462
4,000
6.8 Lakh
35
25
722
4,000
6.8 Lakh
40
20
1164
4,000
6.8 Lakh
(Source: npscra.nsdl.co.in)

Here are details of the investment required in Atal Pension Yojana (APY) to reach a goal of Rs 5,000 per month after attaining retirement, according to the NSDL website:

Fixed monthly pension of Rs 5,000 vs contribution period under Atal Pension Yojana

AGE OF JOINING YEARS OF CONTRIBUTION INDICATIVE MONTHLY CONTRIBUTION (IN RUPEES) MONTHLY PENSION TO SUBSCRIBER AND SPOUSE (IN RUPEES) INDICATIVE RETURN OF CORPUS TO SUBSCRIBER’S NOMINEE (IN RUPEES)
18
42
210
5,000
8.5 Lakh
20
40
248
5,000
8.5 Lakh
25
35
376
5,000
8.5 Lakh
30
30
577
5,000
8.5 Lakh
35
25
902
5,000
8.5 Lakh
40
20
1,454
5,000
8.5 Lakh
(Source: npscra.nsdl.co.in)

Minimum investment required

One can invest in the Atal pension scheme through three modes of payment: monthly, quarterly and half-yearly. This means that the pension scheme requires the investor to make a minimum of two contributions every year. For instance, an investor subscribing for the Atal scheme at the age of 18 years is required to pay Rs 42 per month to reach a pension goal of Rs. 1,000 per month.

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